Question: The following statement was made in a special report, Commercial Mortgage Special Report (September 19, 2005, p. 2), by FitchRatings: Defeasance of a loan in

The following statement was made in a special report, “Commercial Mortgage Special Report” (September 19, 2005, p. 2), by FitchRatings: “Defeasance of a loan in a CMBS transaction is a positive credit event.” Explain why.

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